Volkswagen Plans 20% Cost Cuts Across Brands by 2028, Report Says
Volkswagen is preparing a broad cost-reduction program that aims to lower expenses by 20% across all of its brands by the end of 2028, according to a report published Monday by Manager Magazin.
The magazine, citing information from inside the company, said Chief Executive Officer Oliver Blume and Chief Financial Officer Arno Antlitz presented a sweeping savings strategy during a private meeting with senior executives in Berlin in mid-January.
Cost-Cutting Drive Aimed at Restoring Profitability
The proposed plan is designed to bring Volkswagen’s profit margins back to sustainable levels. The automaker is currently facing several headwinds, including weakening demand in China, the impact of U.S. trade tariffs, and intensifying global competition.
According to the report, the initiative is described internally as a large-scale efficiency push. However, executives did not provide specific details during the meeting on where exactly the cost reductions would be implemented or how cooperation among the group’s various brands would be strengthened.
Plant Closures Could Be Considered
While the exact measures remain unclear, the report indicated that factory closures could be among the options under review as part of the restructuring effort.
Volkswagen, one of the world’s largest automakers, has been under pressure to streamline operations and improve margins as the global automotive industry navigates economic uncertainty, geopolitical tensions, and the transition toward electric vehicles.
If confirmed, the planned 20% cost reduction would mark one of the most significant efficiency programs in the company’s recent history.
